Prime Raie Now 15%%, It

Prime Raie Now 15%%, i t A New High Vd. XCIXi'flo. 41 — Manoh^iter, Conn., Friday, November 16.1979 • Since 186'^> 20< Slngte Copy • 15< Home Ddlwnd I NEW YORK- (UPI) - Citibank much into weekly money supply fluc boosted its prime lending rate on cor tuations, meaning it may not see any porate loans by another quarter point immediate credit-tightening is to IS 3/4 percent today, a new high necessary. that banking analysts said was likely William E. Gibson, vice president to spread throughout the industry. of Smith Barney, Harris Upham & Co., said the huge increase could be The nation's second largest bank one of "a number of blips. I think the t ' - t ! noted the formula it uses to set its Fed understands that and will not be prime called for a 16 percent rate, under intense pressure for further but the bank limited its increase to 15 tightening. I would guess we'll see a 3/4. Banks have come under inten sizable drop next week.” sified political criticism as the The situation is complicated prevailing prime has rocketed this further by the Iranian crisis, in which year from 11 1/2 percent to its the cutoff of U.S. oil purchases from highest levels in history^ Iran also could affect the value of the The increase follows the Federal dollar. Reports that Iran had refused Reserve report late Thursday that to accept further payments in dollars the nation’s basic money supply for its oil sales sent the U.S. currency soared 33 billion in the most recent plummeting on foreign exchange week, a jump far bigger than markets Friday. expected and one that further con However, Iran’s oil boss Ali Akbar fused the outlook for the Fed's Moinfar denied the reports. monetary policy. , “So far we have not issued any Analysts said the Fed could react orders to the effect that we shall not by raising its discount rate — the in accept the U.S. dollar,” Moinfar told terest it charges on loans to member UPI in a telephone interview. banks - from its current level of 12 For consumers, the prime rate in percent to as much as 13 percent. crease eventually will translate into This would be a message that the higher interest rates and tougher-to- central bank i n Is further credit get credit at any price. H i^er in tightening is needed in its anti- terest rates also add to inflation and inflation fight. economists have expected the record On the other hand, the Fed itself interest charges to worsen the has cautioned against reading too nation's economic slowdown. Dems T o Allow ■ Early Primary ^Woodsy OwV Visits School WASHINGTON (UPI) - NaUonal exemptions. The early Massachusetts primary Demoratic leaders today unanimous Environmental Protection, Forestry ly voted to allow Massachusetts to is seen by political observers to be a “Woodsy Owl’’ visited Manchester’s Martin School state Department of hold an early presidential primary, a boost for Kennedy’s presidential Thursday to exchange ideas with students on how to keep Division. Mrs. Masi, left; children are Steven Lammey, move likely to help Sen. Eidward prospects because the Massachusetts America clean. The visit was arranged by Ann Masi, first Carolyn Hart, Joseph Howe, (Kristopher Lindsay, Jessica Kennedy’s campaign against Presi Democrat, even Carter backers con grade student teacher at the school. Mrs. Masi’s brother was Aucoin and Bryna Pasternak. (Herald photo by Pinto) dent Carter. cede, should easily defeat the presi The voice vote by the pemocratic dent in his home state. The momen- Woodsy Owl for the program made available through the National ConomlttM'a CpmpUaoce taooMwntod hr an Mrty victot7 is Review Oomniisekia avert* a poten ex)M)cied to help spur Kennedy’s can tially bitter fight between state and didacy. national Democratic officials. Several cmnmission members said Tbe action means Massachusetts before the vote they were annoyed at Hostages Face New Threats will be able to bold its primary a the behavior of M a^chusetts Party week before tbe 11-week “window Chairman Chester Atkins, who they proposal by Iranian authorities for TEHRAN, Iran (UPI) - Moslem Qpm, having canceled all next month. \ period” that party leaders had set said didn’t do all he could have to the phased release of some of the students holding the U.S. Embassy engagements for the next three In New York, doctors treating Shah aside for the states to select convince the state Legislature — of weeks because of fatigue and a brief Mohammed Reza Pahlavi said hostages. delegates to the Democratic which he is a member - to push back today threatened to use harsher measures against their hostages if illness. Thursday they plan to use a non- National Convention next sununer the primary date. Atkins is a big The students, who also seized a the United States allows the shah to Tehran’s Uxi drivers joined the surgical procedure in about two which will pick the party’s presiden Kennedy supporter. three-member NBC-TV News crew be moved to any country except Iran. march in solidarity with the students weeks to remove a gallstone from his and questioned them for several tial candidate. But Peter Kelly, commission The threat, broadcast over and drove past the embassy, blaring bile duct hours inside the embassy Thursday, New Hampshire, Iowa and chairman and one of Carter’s earliest horns and carrying bunting and The students holding the embassy supporters in 1976, said it was not loudspeakers at the occupied em pledged none of the hostages would Minnesota which like bassy, was hailed with shrieks of posters of the ayatollah. are demanding the extradition of the Massachusetts had picked their “our purpose to punish the voters of be freed until Washington returns the “Down with America” and “Death to Their wives and children also shah, a demand flatly refused by' delegates in 1976 before tbe window Massachusetts because of the con deposed shah or Khomeini gave his Carter” by more than 100,000 entered the protest. As they drove Washington, and the latest medical period, have also been granted duct of a single individual.” approval for their release demonstrators returning from past, the cabbies shouted “Death to news contradicted an earlier report Moslem sabbath prayers at Tehran America” and were cheered by the shah would return to Mexico Highly placed official sources in University. demonstrators jamming both sides of within 10 days. Tehran and in (Jom, the ayatollah’s headquarters, said talks for the “If the shah is moved from the streets. President Carter, in his harshest The ruling Islamic Revolutionary phased release of some of the Language Disdain America to any country except Iran, language yet in reference the situa Council announced formation of a hostages - women and non- as we have demanded, harsher tion, denounced the embassy seizure decisions will be taken regarding the new Cabinet today, but it was not Americans first - were being pushed Thursday as an “act of terrorism,” by acting Foreign Minister Abol hostages,” a student announced. known what effect — if any — the ap but said the crisis required “patience Said a ‘Disgrace’ The threat against the hostages pointment of the 15 new ministers Hassan Bani-Sadr. and measured acjion” as well as would have on the stalemate at the But a student spokesman in the em was the first since Ayatollah “firmness,” CONCORD, N.H. (UPI) - Ibe dis disadvantage,” Rassias continued. Ruhollah Khomeini reprimanded the embassy, bassy, contacted by UPI Thursday, dain Americans show toward foreign “ It also leaves the impression we’re students last week for threatening to Khomeini’s announcement that he He said Iran ‘‘must know that the rejected the idea. “We do not agree with any such languages is a “national disgrace” not interested in learning about their kill the hostages if the United States will not see anyone until Dec. 5 United States of America will not attempts,” the spokesman said in a that diminishes our prestige abroad culture or their ideas. attempted any rescue. That warning raised the possibility the crisis in yield to international terrorism or to telephone interview. “Our stand is and threatens our seoirtty at home, a “I think if we don’t change, we will was not repeated since. volving 62 Americans and about 40 blackmail.” Dartmouth College professor says. become not only a silent partner in Khomeini. 79, spent the sabbath in other people, held hostage for the A spokesman for the Moslem the stand taken by the Imam the family of nations, but an ignored doors at his religious headquarters in 13th day today, could drag on into militants in the embassy rejected a (Khomeini).” “Unless we right this wrong,” said partner,” Rassias said.. Professor John Rassias, “we face The cure for America’s growing disaster as a nation. There’s Just no linguistic Isolation lies at home, other way to put it.” Rassias believes. Rassias, a S2year-old French in “We found in our report that the CRCOG Rejects Study Draft structor at Dartmouth, was one of 2S crux of the problem was dull, boring, individuals appointed by President uninspired, uncommitted tedchers,” The members were almost un- Buckland Commons would shift he said. “Even when languages are HARTFORD — The Regional Plan South Windsor. Carter a year ago to study the While the commission members animous in the opinion any new of- existing jobs, from 1,700 to 2,000 of declining role foreign language# play taught, they are taught so poorly that ning Commission of the Capitol Region Council of Governments agreed with most of the conclusions fice building would merely mean a them, within the region, in American life.

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